Speaker(s):   Michael Toffel (HBS)

Title: Coming clean…and cleaning up? Examining the effects of self-policing

Abstract
As regulators increasingly embrace cooperative approaches to governance, voluntary public-private partnerships and self-regulation programs have proliferated. However, because few have been subjected to robust evaluation, little is known about whether these innovative approaches are achieving their objectives. In the context of a nationwide self-policing program that encourages companies to voluntarily self-disclose regulatory violations, we examine the behaviors of facilities and regulators to gain empirical insights on the theoretical promise of self-policing. We find evidence that on average regulators reduce their scrutiny over self-policing facilities, especially those facilities with better historical compliance records. We also find some evidence that self-policing is associated with improved future compliance records.